Child support in New Zealand is administered by Inland Revenue to ensure that children are financially supported by their parents. It usually happens when the parents separate or do not live together, or the children do not live with one of their parents.

A child support assessment formula used by IRD is set out by the law to work out the payment amount of child support. However, circumstances can change, and the standard formula may not always reflect a parent's actual ability to pay and/or the real costs of raising a child.

A child support review generally allows the liable parent or receiving carer to request a reassessment of a child support amount if they believe the standard formula calculation is unfair or fails to reflect their situation.

Types of review

Child support reviews include administrative reviews, exemption reviews, and commissioner reviews.

You may apply for an administrative review of the child support assessment if your special circumstances satisfy 1 or more of the 11 grounds set out by law. You also need to show that the assessed amount is unfair, your ability to support a child is largely reduced, or the costs to maintain a child are significantly affected.

Common grounds and reasons include:

• Either parent has a duty to financially support another child or person, and/or has extra costs to cover the special needs of another child or person that the parent has a duty to maintain;
• Either parent has necessary expenses in supporting themselves, such as a loan that is being paid off by the parties;
• There are extra costs for the child’s (or children’s) special needs (e.g., high medical costs) or education that significantly affect either parent’s ability to support the child; or
• The child support assessment does not reflect the true financial situation. For example, one party’s income has been significantly reduced.

Exemption reviews can be applied for if a parent meets certain criteria that an exemption from paying child support can be granted. For example, if a parent is a prisoner or a hospital patient they may consider an exemption review.

The Commissioner of IRD can initiate a review of child support only if the assessment does not reflect the income, earning capacity, property, and financial resources of a parent or the child (or children). IRD will contact the parent and other parties to complete the review.

General process of an administrative review

You may start by contacting IRD to discuss your situation. They may suggest a review or an alternative option, such as a formal objection or a voluntary agreement.

If you believe the child support assessment is incorrect, you can make an objection to IRD.

You may alternatively negotiate with the other party to reach a child support agreement that operates independently of the Child Support Act 1991.

If you decide to proceed with an administrative review to have your child support reassessed, generally you will need to submit the application by completing the IR470 form. You will need to provide:

• a detailed explanation of your situation; and
• supporting documents such as financial statements, court orders, medical records (if any), or evidence of expenses.

You may need to complete other forms depending on the grounds under which you are applying. For example, if you apply to reduce your child support payments as the costs to contact your children are high, you will need to fill in an additional form.

Once you submit your application and IRD accepts it, IRD will give a chance to the other party to respond and send them a copy of your application.

The other party needs to contact IRD as soon as possible to confirm whether they wish to respond or not. If so, they must respond within the timeframe (usually 14 days) provided by IRD. You will subsequently receive a copy of any response, information, and supporting documents provided by the other party.

When IRD have accepted your application and contacted the other party confirming their involvement they will organise a hearing. The review and hearing process is free. You may choose to attend the hearing by telephone or in person, or to ask that the decision to be made from written information you provide.

If you choose to attend the hearing, you may bring a support person with IRD’s permission. At the hearing a support person does not have an automatic right to speak but they can help you with preparation.

If you cannot represent yourself, you may apply to IRD for the approval of a representative before the hearing date. A representative or a support person cannot be a lawyer or an experienced advocate.

A review officer, who is an independent person contracted to IRD and experienced in law, will consider the review. They will make recommendations on the child support review based on precedents decided by courts.

They may request additional information from either party and consider the parties’ submissions and evidence. You could provide information that you are comfortable with being exchanged among the parties; however, the review officer will only consider the information that has been exchanged due to the rules of natural justice.

A decision of the administrative review is usually made within three weeks of the hearing. The review officer may:

• confirm the existing assessment; or
• increase or decrease the amount of child support that is payable; or
• adjust the care percentage or include additional costs.

The review decisions are final, and the parties will receive a written decision outlining the reasoning and outcome.

If either party disagrees with the result of the administrative review, the next step could be applying to the Family Court to overturn the decision. The parties have two months from the date of a decision to apply to the Family Court for a Departure Order.

The child support review process exists to ensure fairness where the standard formula does not fit the realities of parents’ lives. It provides a way to tailor child support obligations to better reflect the needs of both the children and their parents or carers.

Leading law firms committed to helping clients cost-effectively will have a range of fixed-price Initial Consultations to suit most people’s needs in quickly learning what their options are.  At Rainey Collins we have an experienced team who can answer your questions and put you on the right track.